Debts Recovery Tribunals and Appellate Tribunals
CANARA BANK vs VEERAMMA on 18 January 2020
22
**IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA
AT BENGALURU**
Dated this the 18<sup>th</sup> day of January 2020
**:Present:
Shri K Ravindran Nair
Hon'ble Presiding Officer
Incharge-DRT-II**
**T.A.No.839/2017
(O.A.No.774/2016-DRT-II)**
**BETWEEN:**
**Canara Bank**
Holalur Branch at Holalur,
Shimogga Taluk and
District- 577 216.
**Represented by its Manager
Sri Krishnamurthy K**
S/o Sri. Laxminarayana Bhat K.
** ...APPLICANT**
**AND:**
**1) Mrs. Veeramma,**
W/o Sri M.G. Mallappa,
Aged about 68 years,
Malali Village, Govinahalli Hobli,
Honnali Taluq,
Shivmogga District- 577 216.
**2) Sri M.G.Mallappa,**
S/o Sri Basappa,
Aged about 72 years,
Hosamalali, Govinahalli Hobli,
Honnali Taluq,
Shivmogga District- 577 2016.
** ....DEFENDANTS**
**Counsels on record/appeared for:**
**Applicant : J S Advocates**
**D1 & D2 : Sri. A. Nagarajappa (W/s not filed)**
2T.A.839/2017 in
O.A.No.774/2016**FINAL ORDERS**
The present Application came to be registered on 06.04.2016. Thereafter on the basis of jurisdiction transferred to DRT-II Bengaluru, and re-numbered as Transfer Application No.839/2017 under Section 19 of the Recovery of Debts & Bankruptcy Act, 1993, seeking recovery of an amount of Rs.16,71,312.98/- (Rupees Sixteen Lakhs Seventy-One Thousand Three Hundred Twelve and paise Ninety-Eight only) from the Defendants together with interest and cost.
2. The case of the applicant bank is that defendants being Wife and Husband have approached the applicant bank seeking financial assistance for various loans. The applicant bank considered their request and sanctioned the following loans (i) Agricultural loan for development of irrigational facilities (ALLD loan) of Rs.43,000/- vide sanction letter dated 27.08.2004; (ii) he was availed the loan for commercial purpose (Canmahila Loan) of Rs.50,000/- vide sanction letter dated 13.05.2005; (iii) Agricultural Loan for crop cultivation (KCC loan) of Rs.75,000/- vide sanction letter dated 3T.A.839/2017 in
09.12.2005; (iv) Agricultural Loan for the purpose of renewals and working capital (KOD loan) of Rs.4.50 lac vide sanction letter dated 15.06.2007. Defendants have executed necessary documents in favour of the applicant bank. After availing the loan, the defendants failed to regularize the loan account and also failed to pay the interest/installments, they did not come forward to repay the balance outstanding. Hence, the O.A was filed and now numbered as TA.839/2017. The applicant bank has produced the documents in favour of its case viz., loan application, sanction letter, memorandum of agreement, Deed of hypothecation and certified copy of loan account extract etc.
3. Further the defendants agreed to repay the above loan with variable rates of interest, as applicable from time to time as per the directions of the Head Office/Central Office of the Applicant Bank and penal interest in case of default and to keep the account regular by paying installments as and when due to the satisfaction of the Applicant Bank, as detailed in the OA by the Applicant Bank.
4T.A.839/2017 in
4. The defendants after utilizing the entire loan proceeds for the above said purpose have failed to make the repayments of the loan dues as agreed, not serviced the interest thereon as per the terms and conditions agreed by them and became chronic defaulters and hence, the recovery process is initiated against the defendants to recover the dues.
5. In the light of these factors, it is contended by the Applicant Bank that, Defendants are liable to pay a sum of Rs.16,71,312.98/- (Rupees Sixteen Lakhs Seventy-One Thousand Three Hundred and Twelve paise Niney-Eight only).
6. After filing the OA, summons was sent through RPAD and same was served on defendants. Ld. Counsel Sri.Nagarajappa filed the Vakalath for both the defendants, and did not file written statement in spite of providing sufficient opportunities. Even when defendants were called out, they remained absent hence, placed ex-parte.
5T.A.839/2017 in
7. To prove the case of the Applicant Bank, its Senior Manager, Mr. Hemanth Kumar B.G, has filed his affidavit by way of evidence and same was considered as evidence of AW-1 and marked at Ex. A-1 and list of documents came to be marked as Ex.A-2 and 35 documents came to be marked as Ex.A-3 to Ex.A-37.
8. No evidence on behalf of the Defendants.
9. Arguments of Learned Counsel for the Plaintiff/applicant bank heard and perused the records of the case.
10. Following points arise for my consideration:
- a) Whether Plaintiff/applicant bank proves its case as contended in the plaint/application?
- b) What order?
11. For the following reasons, I answer the above referred points in the following manner:
**REASONS**
12. Mr.Hemanth Kumar, Senior Manager of the applicant bank came to be examined as AW-1. His affidavit by way of 6T.A.839/2017 in
evidence reiterates the facts pleaded in the plaint and his affidavit is also corroborated by the above referred Ex.A-3 to Ex.A-37 which clearly establish the case of the applicant bank to allow the present TA. Though represented by through their Advocate, Sri A Nagrajappa, but failed to file the written statement and rebut the claim of the Applicant Bank. Hence it is to be construed that the defendants have admitted the entire case pleaded by the applicant bank as sought in the present TA.
13. Therefore, for these reasons, present TA is to be allowed with costs as sought by the applicant bank.
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**:O R D E R:**
Present TA stands allowed with costs.
Defendants 1 and 2 shall be jointly and severally are liable to pay Rs.16,71,312.98/- (Rupees Sixteen Lakhs Seventy-One Thousand Three Hundred and Twelve paise Ninety Eight only) detailed as under: (i) ALLD loan of Rs.51,994/- with interest at the rate of 15.45% P.A.; (ii) Canmahila loan of Rs.32,524/- with interest at the rate of 7T.A.839/2017 in
18.95% P.A.; (III) KCC loan of Rs.1,78,150/- with interest at the rate of 11.5% P.A.; (iv) KOD loan of Rs.14,08,644.98/- with interest at the rate of 14.95% P.A, all the loans at compounded half yearly rests and inclusive of 2% penal interest, from the date of application till the date of final realization, as sought by the Applicant Bank in the TA.
In the event of failure of Defendants to pay the said TA amount, the applicant bank is at liberty to sell the mortgaged immovable properties as described in the Schedule-A, and Schedule-B of the main petition in accordance with law as sought by the applicant bank in the TA.
In spite of sale of the properties mentioned in the Schedule/s, if the TA amount is not fully realized, then the Applicant Bank is at liberty to proceed against the person and other properties of the Defendants as required under law and also as advised.
8T.A.839/2017 in
Applicant Bank shall file fresh Memo of calculation of TA amount together with interest, costs etc., to be paid by Defendants duly taking into account the amount/s if any paid by the Defendants and/or amount realized by sale of assets, etc., during the intervening period after filing the TA, to enable the office to prepare Recovery Certificate for the amount to be paid by the Defendants to the Applicant Bank.
Office is directed to issue Recovery Certificate.
(Dictated to the Stenographer, after its transcription and necessary corrections, signed and pronounced by me in the Open Court on this the 18<sup>th</sup> day of January, 2020)
**(K. Ravindran Nair)** **Presiding Officer** **I/C -DRT II, Bengaluru**
9T.A.839/2017 in O.A.No.774/2016**ANNEXURES:****LIST OF WITNESSES EXAMINED ON BEHALF OF APPLICANT-BANK:**
AW.1 – Mr. Hemanth Kumar, Senior Manager of the Applicant bank
**LIST OF DOCUMENTS MARKED ON BEHALF OF APPLICANT BANK:**
Ex.A1 : Affidavit of AW.1 Ex.A2 : List of documents Exs.A3 – A.37 : 35 documents -
**LIST OF WITNESSES EXAMINED ON BEHALF OF DEFENDANTS :**
- NIL -
**LIST OF DOCUMENTS MARKED ON BEHALF OF DEFENDANTS:**
-NIL-
**(K Ravindran Nair) Presiding Officer I/c-DRT-II, Bengaluru**
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